Now is the best time to buy Apple shares: here’s why
Apple stock tends to outperform between June and September. Apple shares are also great for a recession.
avatar
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.
2022-06-23 19:20

Shares of Apple Inc are still struggling below $140 a share; 25% below the price at which it started the year 2022, which makes up for a fantastic opportunity for investors to buy the highest quality name at a very deep discount.
Now is the best time to buy Apple shares: here’s why

Apple is a great pick for a recession

One of the reasons why Apple could be a great pick here is because signs of a slowdown are starting to show up in the U.S. economy. Historically, investors turn to companies with a strong balance sheet amidst a downturn. And a balance sheet just doesn’t get any stronger than Apple Inc.

With over $50 billion in cash on hand, it’s fair to claim that the American multinational has a strong enough balance sheet to survive a recession. On top of that, there are several other catalysts that can keep the Apple stock strong as ever moving forward. In March, for example, the tech giant unveiled a bunch of new products from a new iPad Air to a Mac Studio that will likely keep its fans excited through the balance of the year. Not to mention an all-new iPhone is scheduled to release later this year as well.

Apple shares usually outperform between June and September

What’s even interesting is that the Apple stock tends to outperform between June and September, as per Bernstein’s Toni Sacconaghi. So, now is the perfect time to load up on shares of the Nasdaq-listed company. In a recent CNBC interview, he said:

“From a traders’ perspective, Apple has a really unique seasonal pattern between June and September. 14 out of the 15 years, the stock has outperformed the market by an average of 14 percentage points between this time frame. Expectations for this quarter are pretty reasonable. So, we may see this pronounced seasonal pattern again.”

Sacconaghi is also convinced the current iPhone cycle is de-risked. Apple Inc will be reporting its financial results for the third quarter in July.

Wall Street sees a 35% upside in Apple stock on average

In the prior quarter, it had topped Wall Street expectations in the face of macro headwinds, including supply constraints and the rising interest rates.

At present, Wall Street rates Apple Inc at “overweight” and sees upside to a $186 share on average that translates to 35% increase from here. The sell-off this year has shaved over $750 billion off Apple’s market cap that now stands at $2.24 trillion. The stock currently trades at a PE multiple of 22.48.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Rate this article

positive
negative
Published On
2022-06-23 19:20

avatar
About the Author
Khan is a professional trader and business writer with over 7 years of experience in several financial markets. Khan takes pride in sharing insightful articles with his readers that help them improve their investment portfolios.

Analyst Ratings
Target Price$176.69
# of Analysts41
Last updated2022-12-19

buy-coffee
You've read 1 article in the last year
..thank you for supporting us and for visiting our site. Unlike many other sites, The Dog of Wall Street is available for everyone to read. Our focus is to provide great content for free. Do you like what we are doing? Buy us a cup coffee. It is the fuel that keeps us going..

NVIDIA Earnings: Will They Even Matter?
Let’s examine the bear and bull case for NVIDIA’s earnings next Wednesday.
By Mike Sakuraba | 2 weeks ago

2 Stocks I'm Avoiding as Markets Hit New All-Time Highs
People like to throw around the term bubble a lot when the market goes up a large amount in a short time. But is it really a bubble or did they just miss out on the action? I usually say it’s the latter.
By Mike Sakuraba | 3 weeks ago

2 Earnings Calls I'm Watching Next Week
It’s been a while since I’ve done this but it was a good practice and forced me to actually listen to the earnings calls of companies I invest in.
By Mike Sakuraba | 3 weeks ago

2 Stocks You Can Still Buy at All-Time Highs
For some reason, we have always been taught to try and buy low and sell high. While that might seem logical, it is a good way to miss out on buying some of the best stocks.
By Mike Sakuraba | 3 weeks ago

24 Assets to Invest in for 2024: Part 7
In Part 6, I spoke about chip stocks, Axon (NASDAQ: AXON),Celsius (NASDAQ: CELH),and the iShares Bitcoin Trust (NASDAQ: IBIT).
By Mike Sakuraba | 4 weeks ago

2 Stocks I'm Buying When Markets Pull Back
Here are 2 stocks I’m prepared to pull the trigger on as soon as the market pulls back.
By Mike Sakuraba | 4 weeks ago

24 Assets to Invest in for 2024: Part 8
In Part 7, I spoke about Rivian (NASDAQ: RIVN),Chainlink, and Evolution AB (OTC: EVVTY)
By Mike Sakuraba | 4 weeks ago

Tesla Bears Rejoice: Another Bad Quarter from Tesla
I think the next year or two is going to be tough for the company and the stock.
By Mike Sakuraba | 1 month ago